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Minnesota Public Construction Bonds

Minnesota requires surety security when public works contracts at or above the competitive-bid threshold in §471.345, subd. 3; performance and payment bonds; the statute does not set a universal percentage. Public works projects can have project-specific exceptions; confirm whether the contracting entity’s statutory threshold and project type trigger the bond. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Minnesota Requirements

RequirementDetails
Public construction securityPublic works contracts at or above the competitive-bid threshold in §471.345, subd. 3; performance and payment bonds; the statute does not set a universal percentage. 1

What to Watch for in Minnesota

  • Check the Minnesota Contract Trigger

    Minnesota law triggers public-work security when public works contracts at or above the competitive-bid threshold in §471.345, subd. 3. Performance and payment bonds; the statute does not set a universal percentage Ask the contracting agency to confirm whether your project falls under this rule and to state the bond penal sum in the bid documents. 1

  • Minnesota Has Another Bond Rule for This Work

    Public works projects can have project-specific exceptions; confirm whether the contracting entity’s statutory threshold and project type trigger the bond. Before binding the surety, match the required obligee, bond form, and covered obligation to this separate rule. 2

  • Match the Solicitation’s Bond Form

    The Minn. Stat. §574.26 governs this statutory obligation, while the project solicitation identifies the obligee, filing deadline, and any bid-security details. Get the final form approved before the bid date and confirm that the named surety is authorized for Minnesota work. 1,2

Who Regulates Insurance in Minnesota

Minnesota Department of Commerce

The Minnesota Department of Commerce regulates insurance companies and producers, reviews rates and forms, and investigates complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of taxable gross premiums less return premiums, plus a 0.04% stamping fee on taxable premium when Minnesota is the insured's home state When Minnesota is the insured's home state, 3% tax applies to taxable gross premiums less return premiums; the separate 0.04% stamping fee on taxable premium is paid by you to the broker. Minnesota requires a policy warning that insolvency loss payment by a nonadmitted insurer is not guaranteed. A diligent search generally applies unless a Minnesota-licensed producer unaffiliated with the surplus-lines broker refers the risk, which the statute deems unavailable from a licensed insurer; an exempt commercial purchaser also has a separate written-request route after the required admitted-market disclosure. 6,9,7,8,10

Minnesota Surplus Lines Association

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Minnesota. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 16

Questions to Ask Before You Buy in Minnesota

  1. Which Minnesota statute or procurement rule triggers this bond for our project, and what is the exact penal sum?
  2. Will the obligee accept another form of security, and who must approve that substitution in Minnesota?
  3. What notice, filing, and claim deadlines should our subcontractors and suppliers track under this bond?

Surety Bonds in Minnesota: FAQ

When does a Minnesota public construction project require a surety bond? 1

Public works contracts at or above the competitive-bid threshold in §471.345, subd. 3. Performance and payment bonds; the statute does not set a universal percentage 1

Does Minnesota have another bond requirement beyond the public construction bond? 2

Yes. Public works projects can have project-specific exceptions; confirm whether the contracting entity’s statutory threshold and project type trigger the bond. 2

Surety Bonds in Other States

Other Coverage in Minnesota

Sources

  1. Minn. Stat. §574.26. Minn. Stat.; Minn. Stat. §574.26. Accessed 2026-09-29.
  2. Minn. Stat. §471.345. Minn. Stat.; Subdivision 3: municipal contract threshold cross-referenced by §574.26. Accessed 2026-09-29.
  3. Insurance. Insurance; Insurance regulator and consumer resources. Accessed 2026-09-28.
  4. Insurance License Lookup. Insurance; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Insurance; Insurance complaint topic; filing portal, complaints line, email contact. Accessed 2026-09-28.
  6. Minn. Stat. §297I.05. Minnesota Revisor of Statutes; 3% on gross premiums less return premiums when Minnesota is insured's home state; 100% taxable in Minnesota. Accessed 2026-09-28.
  7. Instructions for 2026 Semiannual Stamping Fee Report. Minnesota Surplus Lines Association; 2026 report p.1, lines 82–94: stamping fee rate .0004 (0.04%) of policy premium for transactions effective on or after October 1, 2016; current report linked from the association's 2026 site. Accessed 2026-09-28.
  8. Minn. Stat. §60A.207. Minnesota Revisor of Statutes; 2025 text, lines 250–255: policy notice states insurer is not otherwise licensed in Minnesota and insolvency loss payment is not guaranteed. Accessed 2026-09-28.
  9. Minn. Stat. §297I.01. Minnesota Revisor of Statutes; Definition of gross premiums for nonadmitted insurance includes fees, assessments and other consideration, with stamping fee and operating assessment exclusions. Accessed 2026-09-28.
  10. Minnesota Statutes 2025, §60A.201. Minnesota Revisor of Statutes; 2025 Minn. Stat. §60A.201 subd.1 (admitted-market restriction); subd.5 (ECP disclosure and subsequent written request); subd.6 (risk referred by unaffiliated Minnesota-licensed producer deemed unavailable). Amendments listed through 2025. Accessed 2026-09-28.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  13. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  14. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  15. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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